Affordable Mortgages! The Latest News!

Quick Facts about MN Housing

Down Payment Assistance Programs

Down Payment Assistance available for First Time Homebuyers

in the 11 County Metro Area.*

Minnesota Mortgage Program (MMP)

Assistance available up to $3000.

Current Yearly gross income limit of $83,900 for 1-4 persons.

(Single Family Home Income Limits)

CASA (Community Activity Set Aside)

Assistance available up to $5000.

Yearly gross income limit of $67,200 for 1-4 persons.

(Single Family Home Income Limits)

HOME HELP

Assistance available up to $7,000

Yearly gross income limit of $44,800 for 1 person.

(Income limit adjusts as household size increases. Single Family Home Income Limits).

Affordable Advantage

100% financing. No Mortgage Insurance. 680+ credit score.

Minimum of $1000 of borrower’s own funds.

3% seller contribution.

Current Yearly gross income limit of $83,900 for 1-4 persons.

*All programs require final loan approval with an FHA or a Conventional loan program. Borrowers must meet MN Housing target borrower requirements. (6/23/2010)

Please call me with any questions:
Nancy Uppgren
651.247.1718

Money for first time homebuyers

Minnesota Housing Mortgage Loan Programs
What do our programs have to offer first-time homebuyers?
Mortgage loans to purchase a home through local lenders for qualified low and moderate income first-time homebuyers in Minnesota
30-year loans with affordable, low, fixed interest rates for the life of the loan
Interest-free loans to help with downpayment and closing costs for eligible borrowers

You may be eligible for a Minnesota Housing mortgage if you:
Are a first-time homebuyer, meaning you have not owned a home in the past three years,
Have federal income tax return copies for the last three years,
Have acceptable credit,
Have an income at or below prescribed Minnesota Housing income limits
For basic first-time homebuyer program for a family of four, income limits are as follows:
11-County Twin Cities Metro Area – $84,000
Rochester MSA – $77,600
Balance of State – $73,100
Buy a qualifying home within prescribed purchase price limits as follows:
11-County Twin Cities Metro Area – $298,125
Balance of State – $237,031

Contact a Lender
Minnesota Housing partners with lenders across the state to provide our loan products to consumers. To learn more about which Minnesota Housing program is right for you, and to see if you qualify, please contact a local participating lender.
nancyup.com

Help for those whose house is worth less than their mortgage

FHA LAUNCHES SHORT REFI OPPORTUNITY FOR UNDERWATER HOMEOWNERS
Effort designed to encourage principal write-downs for responsible borrowers

WASHINGTON – In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development today provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain ‘underwater’ non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth – or ‘underwater’ – because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

“We’re throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined,” said FHA Commissioner David H. Stevens. “This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product.”

Today, FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA’s refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner’s primary residence. And the borrower’s existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower’s combined loan-to-value ratio to no greater than 115%.

In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.
For more information, you may contact me at 651.247.1718 or by email at nancyup@kw.com. http://www.nancyup.com